Weakness of return on investment to evaluate performance


Question: Which of the following statements is not a weakness of using return on investment (ROI) to evaluate performance? Multiple choice question. It may be difficult to assess the performance of a manager who takes over an existing business segment. ROI does not include the investment in nonoperating assets, such as land held for investment or stock in other companies. Managers may increase ROI in a way that is inconsistent with company strategy. Managers may reject investment opportunities that would benefit the entire company but negatively affect the manager.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Weakness of return on investment to evaluate performance
Reference No:- TGS03425376

Expected delivery within 24 Hours